Musashi of Japan bets big on India's electric two-wheeler story

Time of India

23-05-2025

HighlightsMusashi Auto Parts is betting big on India's electric two-wheeler market, driven by local demand and cost advantages. The company is expanding its EV portfolio through partnerships and investments, including e-axle manufacturing with Delta Electronics and Toyota Tsusho. India is emerging as a strategic global hub for Musashi, with plans for increased capacity, possible greenfield expansion, and broader EV component exports.
Mumbai:
It is just a little over a year since
Naoya Nishimura
took over as CEO of
Musashi Auto Parts
(India) but he is already convinced that there are tremendous opportunities ahead in the country's electric two-wheeler segment.
A wholly-owned arm of Japan's
Musashi Seimitsu
Industry Co, the company has its operations in Bengaluru and Bawal, Haryana. Honda Motor has a stake of over 20per cent in the parent company which by itself translates into a deep bonding between the two entities.
Domestic demand is high in India and we will look at targeting supplies here first. My personal view is that the future can see India take a bigger role for MusashiNaoya Nishimura
Quite naturally, HMSI (
Honda Motorcycle & Scooter India
) is a major customer for
Musashi
while Royal Enfield, Suzuki and Yamaha also feature in its list for supply of ICE (internal combustion engine) parts like transmission gears, shafts and camshafts.
'Our headquarters is aggressively focusing on India for its expansion plans. New product development is currently not happening so much in the world while India is growing rapidly in both ICE and electric vehicles,' Nishimura, who is also CEO of Musashi Africa, told ET Auto in a recent interview.
Bullish on startups
The company recently made an investment in the Coimbatore-based startup,
BNC Motors
, for electric scooters. Emobi, another startup based in Bengaluru, has a partnership with Musashi Seimitsu, the Japanese parent, and Honda Power Pack Energy India for electric scooters. Going forward, Musashi Auto Parts will explore more opportunities in the electric space with companies such as Ather, TVS Motor etc.
New product development is currently not happening so much in the world while India is growing rapidly in both ICE and EVsNaoya Nishimura
Musashi Seimitsu, Delta Electronics and Toyota Tsusho have also invested in Musashi Delta e-Axle India, a separate entity, which will cater to supplies of
e-axles
for two-wheelers. The e-axle consists of a gearbox and motor and the company (to quote its press release at the time of entering the market) will strive to provide high added value by way of compact, light and quiet characteristics required for EVs.
'Going forward, we will aim to supply e-axles to a wide range of customers, with the main target being the 125cc class, which is the volume zone for motorcycles in the Indian market,' added the press statement. Musashi Seimistu holds 51per cent in this entity with Delta and Toyota Tsusho taking up 34per cent and 15per cent each.
'While Delta is considering how to reduce costs, Toyota Tsushosa has a great network in the supply chain and we are developing the entire e-axle. So combined, these three companies are developing the next generation e-axle with more competitiveness,' said Nishimura.
Also Read: Musashi appoints Naoya Nishimura as CEO for India, Africa region
India vs China
Musashi also has operations in China where it largely meets the needs of BYD and other local automakers. Japanese brands like Honda, Nissan and Toyota are not doing as well in this market where electric has made deep inroads and local Chinese car brands are literally firing on all cylinders.
Despite this, Musashi is more upbeat about India where the two-wheeler transition to electric is growing by leaps and bunds. 'I hear that the economic environment in China is not so good right now while India is seeing greater expansion,' said Nishimura.
According to him, electric two-wheeler growth in this part of the world is 'quite fast' with additional support coming in from the Government by way of fiscal sops. Three-wheelers are also catching up quickly and Musashi Auto Parts has decided to keep its eyes open on the pace of growth in electric four-wheelers too. The company, incidentally, supplies bevel gears, transmission gears and shafts to ICE-powered four-wheelers as well as EV parts.
When demand for four-wheeler EVs increase, we will look at further expansionNaoya Nishimura
Nishimura said India has an edge over other countries in cost-competitiveness which will come in handy from the viewpoint of global sourcing. 'Of course, domestic demand is high in India and we will look at targeting supplies here first. My personal view is that the future can see India take a bigger role for Musashi when it comes to global supplies of auto parts,' he said.
Advantage India
Whether this means taking over more responsibilities from some existing operations in the ASEAN region remains to be seen but the company realises that there are inherent advantages to be availed of in India's cost and quality paradigm. Going forward, free trade agreements may also help the cause especially when it comes to despatching shipments across ASEAN, encompassing countries like Thailand, Malaysia, the Philippines etc.
Nishimura said plant capacity in India would be increased keeping in mind the growing demand for electric as well as the ICE business where its 'No 1 customer is making a lot of products', the reference being to HMSI in all likelihood. The company may even look at a greenfield facility as the automotive market grows in the coming years.
'When demand for four-wheeler EVs increase, we will look at further expansion,' he said. It is also too early to say if another separate entity, similar to the e-axle business, will be set up unless there is a need for a specific partnership in the EV arena like batteries for instance.
Also Read: Musashi commences production of e2w e-axles in India
According to Nishimura, the company is flexible enough to adapt to fuel changes in the future. Electric is still making the news but automakers are also looking at hybrid and flex fuel options as interim solutions. More recently, Honda announced that it was now going to focus on hybrids instead of electric keeping in line with global trends.
For Musashi, the key lies in 'utilising current assets' optimally by way of catering to different markets with their own specific fuel requirements be it ICE, electric or hybrid. 'We are very flexible and this is one of the strong points in our group with its varied competencies,' said Nishimura.